Assuming a typical student needs ~160 credit hours to graduate, wouldn't it actually be worse for the University to keep students in school longer? (Less room for new students?)
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With tuition exploding, universities and colleges have more of an incentive than even to see students take 5 or 6 years to finish their degrees. I wonder if some schools purposely try to slow down degree completion. Admittedly, I'm not exactly certain how they would do that.